CFPB Zeroes In On Student Loan 'Auto Default' Complaints

By Daniel Wilson

Law360, Washington (April 22, 2014, 12:01 AM ET) -- The Consumer Financial Protection Bureau released a consumer and industry advisory on the issue of “auto defaults” for a private student loan that are triggered by the death or bankruptcy of a co-signer, saying Tuesday the bureau has received a growing number of borrower complaints on the issue.

In its semiannual update on student loan complaints, the agency said it received more than 2,300 complaints about private student loans between October and March — a 39 percent uptick in complaints since its previous report — and...